Scott Szwast: The global business next door

Summary

This engaging script challenges the common perception of international trade by highlighting the significant role small and medium-sized businesses play in global markets. While many visualize large corporations, over 98% of U.S. exporters are small businesses, often family-owned. Through a compelling example of a mother-daughter jewelry business that unexpectedly thrived internationally, the speaker emphasizes the need to overcome self-imposed barriers such as doubt, uncertainty, and fear. With over 70% of global purchasing power outside the U.S., the script encourages these businesses to embrace international opportunities and recognize that the world is their market.

Takeaways

• 🌍 Over 98% of exporters in the U.S. are small and medium-sized businesses, not large corporations.
• 👩‍👧 Many successful exporters are family-owned, with a significant number being mother-daughter businesses.
• 💡 Small businesses can export a diverse range of products, from custom goods to unique handmade items.
• 📉 Fewer than 1% of American companies currently export, representing the lowest level among industrialized nations.
• 😟 Self-imposed barriers like doubt, uncertainty, and fear prevent many businesses from exploring international markets.
• 📈 Engaging in international trade offers substantial growth opportunities and reduces the risk of business failure.
• 🤝 The world's purchasing power is increasingly located outside the U.S., with over 70% of it available globally.
• ⚠️ Many companies mistakenly think that exporting is fraught with risks, while studies show domestic-only companies face greater risks.
• 👖 The Gap started as a small store selling jeans and now exports to over 90 countries, exemplifying how local businesses can go global.
• 👋 The global market is eager for new business, and small businesses should embrace international trade to maximize their potential.

Q & A

What is the primary focus of the transcript?

The transcript emphasizes the significant role that small and medium-sized businesses (SMBs) play in international trade, contrasting this with the common perception that international business is dominated by large corporations.

What percentage of exporters in the U.S. are small and medium-sized businesses?

Over 98% of exporters in the United States are small and medium-sized businesses, with many having fewer than 50 employees.

What barriers do small businesses face in entering international markets?

The barriers include self-imposed doubts about international opportunities, uncertainties regarding how to reach foreign customers, and fears of the risks associated with international trade.

Can you provide an example of a successful small business in international trade?

One example is a mother-daughter business that initially wanted to import jewelry but ended up exporting their custom-made steampunk jewelry after discovering international demand, leading to over $280,000 in international sales.

What misconceptions do small businesses have about international trade?

Many small businesses doubt that international opportunities are available to them, fear regulatory complexities, and overestimate the risks of engaging in international trade.

What percentage of American companies currently export?

Fewer than 1% of American companies currently export, which is considered the lowest level of active exporters among industrialized nations.

How does exporting benefit small businesses?

Exporting provides small businesses with greater growth opportunities, and studies show that exporters are nearly 8.5% less likely to go out of business compared to those that only operate domestically.

What role does the global market play for small businesses?

The global market offers vast opportunities for small businesses, with over 70% of the world's purchasing power and 95% of consumers located outside the U.S., indicating that there is significant demand for their products.

How did the Gap start, and what is its current status in international markets?

The Gap started as a small store selling jeans and vinyl records, and it has since expanded to ship products to over 90 countries and open more international stores than domestic ones.

What can small businesses learn from the experiences of successful exporters?

Small businesses can learn that embracing international trade can lead to unexpected success and financial growth, and they should not shy away from opportunities due to self-imposed fears or doubts.